Transcript The provincial budget - University of Victoria

The Provincial Budget:
What does it mean for you and
your family?
Victoria, BC
March 3, 2015
Overview
 Welcome!
 Panelists
Iglika Ivanova
Senior Economist and Public Interest Researcher
Canadian Centre for Policy Alternatives
Lisa Matthaus
Provincial Lead, Organizing for Change
Priorities for Environmental Leadership
Dr. Michael J. Prince
Lansdowne Professor of Social Policy
University of Victoria
 Discussion and Questions
BC Budget Reality Check: Fiscal Surplus,
Social and Environmental Deficits
Iglika Ivanova • [email protected]
Senior Economist • Public Interest Researcher
March 3, 2015
Budget 2015 shows BC has considerable resources
•
Budget surplus for last fiscal year close to $1 billion ($879
million)
•
Budget surpluses projected for the next three years (plus fiscal
cushion of $600 - $750 million per year in contingency and
forecast allowance)
•
Economic growth forecasts put us in a good position
•
Our credit rating is excellent, our debt levels are manageable
and interest rates are record low
BC Budget 2015 ignored:
37. Introduce a comprehensive poverty
reduction plan, & review income
assistance rates, the minimum wage, &
clawback of child support payments.
38. Examine the persons with disability
(PWD) rate & consider increases to
reflect the higher cost of living.
40. Provide funding & support for the
development & implementation of a
child care plan.
42. Incrementally increase legal aid
funding.
Source: Author’s calculations based on BC Budget 2015.
Source: Author’s calculations based on BC Budget 2015.
Source: Author’s calculations based on BC Budget 2015.
The cost of the carbon tax revenue “neutrality”
Average annual increase in BC Budget revenues since
2008/09
Post-secondary education fees
MSP premiums
Federal transfers
Personal income tax
Property tax
Corporate income tax
Sales tax
Other revenue (fees & licences, sales)
Crown Corporation revenues
Other taxes
Natural resource revenues
-6%
-4%
-2%
0%
2%
4%
6%
8%
Source: BC Budget 2015. Table A9. Carbon tax not shown (introduced in July 2008). These eleven
items and the carbon tax make up all BC government revenues.
Average annual increase in BC Budget revenues since
2000/01
Post-secondary education fees
MSP premiums
Corporate income tax
Federal transfers
Property tax
Crown Corporation revenues
Sales tax
Personal income tax
Other taxes
Other revenue (fees and licences, sales)
Natural resource revenues
-4%
-2%
0%
2%
4%
6%
8%
10%
Source: Author’s calculations based on BC Budget 2015 (Table A9) and BC Financial and Economic
Review 2012 and 2014 (Tables A2.4, A2.5 and 2.7); Carbon tax not shown.
Fundamental shifts in BC’s revenues
Budgets are about priorities
•
Underfunding public services and programs hurts the most
vulnerable British Columbians
•
Turning a blind eye to our social and environmental problems
today only makes it more difficult and costly to deal with them in
the future
•
BC’s tale of great disparity shows that the market has failed to
provide for many – we need a more inclusive economy
•
Are your priorities reflected in this provincial budget?
To learn more
Budget 2015:
Environmental Highlights
Lisa Matthaus
Provincial Lead
Throne Speech 2015
Water Sustainability Act
Implementation
 $25 million over 3 years
 Paid for by recent price increases
 Still lowest water rates in Canada
 $0.02 - $2.25 per 1000m3
Climate-related
 Cement industry incentives
 $9 million in 2015/16, $27 million over 5 years
 maintains GHG reduction incentive!
 Low-emission vehicle incentives
 $7.5 million for vehicles
 $2.5 million for chargers, research, etc.
Source: Provincial Economic Multipliers (BC Stats, 2008) and Lee and Carlaw,
(CCPA, 2010)
Budget 2015:
Social Policy Highlights
Dr. Michael J. Prince
Lansdowne Professor of Social Policy
University of Victoria
Social Policy in BC Budget 2015
 Health Care
Increasing funding to accommodate growing needs
 K to 12 Education
Additional funding and labour stability
 Post-secondary Education
Continuing efforts to find efficiencies
 Families and Individuals
“Making life a little easier for those in need”
Health Care
Budget measures
Additional spending over next 3 years
Ministry of Health: program expenditures
(hospice, and palliative and end-of-life care
services noted)
$2.9 billion
Hospital and other health care
infrastructure: capital spending
$2.7 billion
Canadian Cancer Society
$12.5 million
New children’s fitness equipment tax credit
(a benefit of up to $12.65 per child a year)
$9 million
Medical Services Plan premium increase
(a tax increase) effective Januray 1, 2016
$210 million (an increased cost of $36.00 to
$72.00 a year for those affected); an overall
increase in MSP revenues of $389 million in
next three budget years
Education
Budget measures
Additional spending over next 3 years
K to 12 Education
$564 million ( includes a $73 million increase
to Learning Improvement Fund)
Advanced Education
$41 million
Capital spending on schools
$1.6 billion
Capital spending on post-secondary
$2.1 billion
Education coaching tax credit for teachers
No material impact on budget (a tax benefit
and teaching assistants (to be reviewed after of up to $25.30 per eligible teacher or
3 years)
teaching assistant)
BC School Fruit and Vegetable Nutrition
Program
$1 million
Training and Education Savings Grant for
children turning age six
Parents/guardians must establish a RESP
for the one-time payment of $1,200 per
eligible child (for as many as 40,000 children
every year)
Financial Support
Budget measure
Additional spending over
next 3 years
Target population
Early Childhood Tax Benefit
(up to $660 a year for each
child)
$438 million
About 180,000 families with
children under age six
Child support payment
exemption from income
assistance calculations
$24 million
About 3,200 single parent
families on income or
disability assistance
Income assistance: net
caseload growth and
program delivery costs
$20 million
About 4,100 clients of
Disability Assistance
BC tax reduction credit
$15 million (foregone
revenue)
Roughly 500,000 individual
taxpayers earning between
$18,327 to $19,000 a year
Children and Family Services
Budget measure
Additional spending over
next 3 years
Comments
Community Living BC
$106 million
$69 m to maintain existing
services and increases in
caseloads of adults with
developmental disabilities;
$37 m for wage increases
for staff
Ministry of Children and
Family Development
$57 million
Most new money goes for
child care subsidies
program; other areas, such
as children and youth with
special needs, are flat-lined
(that is, shrinking) budgets
Discussion & Questions
Please Give Us Your Input on the Future of Our Province
Thank You!
Carole James, MLA
Victoria-Beacon Hill
1084 Fort Street
250-952-4211
[email protected]
Rob Fleming, MLA
Victoria-Swan Lake
1020 Hillside Ave
250-360-2023
[email protected]